Being able to buy a property in Spain is a dream for many. The reasons may vary. Regardless of whether it is the long-awaited holiday home or alternate accommodation, the acquisition is the same. The procedure differs from how we make real estate purchases in Sweden.
I was going to explain very easily so you get a picture of how the buying process is going. Often it is both a blend of delight, but also worry as the regulations differ as much as it does from Sweden. We at Christopher Landström Real Estate (CLRE) help you in every step towards your new accommodation.
Spanish Property prices and bidding.
It is unusual for bidding in Spain. Often the seller deals with those who pay the requested price or a lower price in consultation with the sellers. This does not mean that it is impossible to get a lower price than initially requested, but no obvious.
After the parties buyer, seller reached consensus, a down payment is also called a deposit of the buyer to prove that it intends to complete the purchase. The value of the deposit may vary, a rule of thumb 10%, but can vary as stated. This amount is credited to (CLRE) Client Agent Account. If the purchase process exceeds 70 banking days, an additional deposit (down payment) of 10% of the purchase price will be paid by the buyer. This payment is made within 14 business days of signing a reservation. This is according to Spanish law.
It is transferred to the seller when both parties have entered into a contract. The value of the deposit is deducted at the end of the sale of the property of Notarius Publicus.
Additional costs.
In connection with the purchase of a property in Spain, most taxes and fees are payable. Generally, you should expect a supplement between 12-14% on the purchase price. Then you are very close to the current closing price.
Used real estate currently has 10% in transfer tax.
Purchase of new production also adds a stamp tax which currently amounts to 1.5% on the purchase price.
Notary.
The notary’s costs vary when many factors are involved, a good rule of thumb is 0.5% of the purchase price.
Registration fees.
The property must be registered with you in the Land Registry (property register) which also entails a cost to the buyer. It usually amounts to 0.5% of the purchase price.
In addition to these costs I mentioned above, there are also fees for subscriptions, electricity, water, gas, alarm, etc.
In order to buy a Spanish property, those who have to go on a regular basis must have a NIE number, which is a Spanish tax identification number. You can apply a NIE number to the Spanish police, the Spanish Embassy, the consulate in Sweden. The easiest way to apply is via agents if you do not wish to do it yourself. The time schedule is slightly different depending on where you apply for NIE.
We will of course help with any administration regarding NIE number.
Title deeds.
It takes 2-3 months to register the law of the Land Registry. After all taxes and fees are paid, you will return this with the registration certificate.
Notarius Publicus.
Notarius Publicus is an officially appointed lawyer who is responsible for controlling the parties’ identity, informing about the existence of debts on the property, and verifying that the payments are made correctly to the Spanish law seller. Notary Publicus also establishes the letter of purchase which is the reason for your legal application.
It is important to know that Notarius Publicus does not control the condition of the property, it is the buyers who have a duty of investigation. As a real estate agent, we usually look at the shortcomings that can be found on the property and these should be illuminated before the decision to proceed by you as a buyer.
A normal takeover usually commutes between 30-50 days from contract writing, as often funding, application of NIE number, opening of Spanish bank account takes some time.
If you have questions about the above please do not hesitate to contact us.
Our Complete Solution.
We offer you a comprehensive solution with fixed price, notary, registration costs, lawyer and administrative costs when you buy a property with us, regardless of price.
This includes:
- NIE – Personal assistance for obtaining NIE-number for those who will be on the property.
Power of Attorney – The signing of proxy in both Sweden and Spain includes Notarial fees. - Notary Public – Signature of transfer management at purchase and sale. After this, you are the owner of the property and Notary’s costs are paid.
- Land Registry – Registration at the property register includes the registration fee.
- Water company – Ownership change and start-up of a car.
- Electricity company – Ownership change and start-up of autogiro.
- Suma Tax Office – Ownership change and start-up of autogiro.
- Real Estate Association – Ownership and start-up of a car.
- Implement owner changes like telephony, internet, gas.
- Revision of electricity certificates and housing certificates.
This cost amounts to only 3500 € and includes all persons who will be on the purchase contract. 2 persons = 2 st NIE-number and 2 full powers.
An example follows below.
The property you chose to buy costs 100,000 € You pay 10% in the transfer tax on the purchase price, 10,000 € and 3500 € for legal and administrative costs.
Total cost for your property: 113,500 €
If you have any questions please do not hesitate to contact us. We help you!
Christopher Landström Real Estate
